Bank of Canada and National Debt

Canada faces problems similar to those found in most ‘first world’ countries-
relatively high unemployment, stagnant wages for workers, and a struggling
economy.

Under these circumstances, investment in infrastructure is a
classic government approach to address these problems. Infrastructure-creating projects have in the
past included the building of the Trans-Canada highway system, St Lawrence seaway, creation of a public system of health care facilities including hospitals, not to
mention the largest project in recent memory- the infrastructure and equipment
necessary for Canada’s huge contribution, from 1939 to 1945, to Allied victory in the Second World War!

At the same time the rapid, constant rise in our national debt increases pressure for cutbacks in funding for, and hence services from, government programs
intended to benefit the public. This is true at the Federal, Provincial and Municipal levels of government.

How best can this investment be created, while simultaneously minimizing the effect on our national debt and social programs?

The National Debt

What is our current national debt, what affects it, and how was it accumulated?

Canada’s national debt is 645 BILLION dollars (on 10 Jul 2017)
and grows at $ 77 million dollars a day. It is estimated that at least $75 million of this daily figure is compound interest, charged to service the debt.
(error corrected May 18)

How did we accumulate such a huge debt and staggering interest charges? A clear explanation is given

she gave to the conference of the Public Banking Institute of America, in Philadelphia PA.

One main stream media review of the speech is given

here.
Not surprisingly, the Financial/National Post did not agree, in an article notable for its patronising contempt for a 12 year old, but
also notably lacking any accurate counter arguments. There appears to be no other negative reviews of
her speech.

The real reason for this massive debt was best expressed by
the Auditor General of Canada in his 1993 annual report, as follows:

” From
Confederation up to 1991-92, the federal government accumulated a net debt of
$423 billion. Of this, $37 billion represents the accumulated shortfall in
meeting the cost of government programs since Confederation. The
remainder, $386 billion, represents the amount the government has borrowed to
service the debt created by previous annual shortfalls.”

The Bank of Canada- publicly owned by all Canadians

Canada is relatively unique among ‘first world’ countries, in having a publicly owned central bank- ie
one owned by the Canadian people- NOT private shareholders.
Costa Rica has one, as does the state of North Dakota This gives these organizations the ability to create money to lend to government at
minimal interest , and return the interest to its owner, their citizens.

Neither the American Federal Reserve Banks, nor the Bank ofEngland, both central banks, are publicly owned.

Canada now has a new government organization. It is a
Crown Corporation called the ‘Canada Infrastructure Bank’, created in an omnibus
budget bill C-44 (recall the Liberal’s promise to eliminate omnibus bills?) passed
22 June 2017.

Changing the way money is created to serve society
We are a non-partisan coalition of organizations and
all concerned citizens from across Canada, campaigning to change the
way money is created in our country.